Bunuel
The financial aid office of a certain college has agreed to provide a $9,000 grant to every student whose total family income (not including the grant) is $22,500 or less. However, for every $40 in family income above this figure, the grant is reduced by $10. If Cedric's award is reduced 40%, what is his family income?
(A) $26,100
(B) $27,000
(C) $31,500
(D) $36,900
(E) $ 44,100
The college provides financial grant of $9000, if the Total Family Income (TFI) is less than or equal to $22,500.
For every $40 increase beyond the $22,500 TFI, the grant gets reduced by $10 each time.
Finally, the student receives a grant after 40% reduction
= 9000 - 40%*(9000)
= 9000 - 3600
= $ 5400.
OR directly, 60%*(9000) = $ 5400.
$ 5400 is the amount received as Grant, while
$3600 is the reduction in grant.
For every $ 10 reduction in grant , the TFI beyond $22500 has increased by $10 each time.
Number of times the grant has reduced
= $3600/ $10
=
360 times.
So, the TFI has increased 360 times.
The amount increase = 360 * $40 = $ 14,400.
So, the actual TFI of Cedric family
= $22500 + $14400
=
$ 36,900. Option D